Foreign Portfolio Investors inject over Rs 16,000 crore into Indian equities this week

Foreign Portfolio Investors (FPIs) have pumped in Rs 16,881.03 crore into Indian equities in the second week of September, according to data from the National Securities Depository Limited. The investments are made between September 9 to 13, 2024.

Inflows in the week were significant, with the week's peak coming in on September 11, when FPIs invested Rs 2,962.44 crore, underlining their confidence in the return available from the Indian stock market. The inflow is a continuing trend, since the first week of September, when FPIs added a net Rs 10,980 crore to Indian markets.

The latest inflows have upped the total foreign investment into Indian equities for September to Rs 27,861 crore, a pointer that reflects strong interest in global investors.

Market Insights and Outlook

Experts attribute this sustained FPI interest to several factors, including solid economic fundamentals, improving corporate earnings and favorably directed global sentiment towards emerging markets. Meanwhile, Investor sentiment, despite having faced volatility and related concerns such as SEBI 's new disclosure norms and the possibility of recession fears in the US, remained buoyant in the week under review.

Shares Maintain their Rising Trend

Vinod Nair, Head of Research at Geojit Financial Services said, “Indian markets have fared through last week's negative sentiment over SEBI 's disclosure deadline and US recession fears. The strong monsoon and the festive demand expectation has buoyed investor sentiment. Next week will be crucial in terms of the Federal Open Market Committee (FOMC) meeting and domestic corporate earnings, which will establish market direction.”

FPIs have a surge this month, against the contrast scenario of net foreign investment figures for August at Rs 7,322 crore, which is the lowest in three months. Comparatively, FPIs had infused Rs 32,359 crore in July.

Foreign investors were net sellers in August as per data from NSDL, which indicates a temporary pullback before September.

And with interest in Indian equity markets remaining high, upcoming policy decisions and corporate performance for the quarter will be closely watched to gauge future investment trends.